CITY of York Council is set to receive more than £246,800 in dividends from a publicly owned buying organisation that supplies local authorities with stationary, training and other services.

Yorkshire Purchasing Organisation (YPO) is made up of 13 councils, including York, as well as 65 associate members, such as other local authorities, police forces and fire and rescue services.

YPO's managing director is Simon Hill.

He said the company helps reduce costs for members through economies of scale and returns the surplus to councils to deliver front line services.

Vice chairman Cllr Stuart Rawlings added that profits are shared back as dividends.

He said: "YPO has always helped local authorities find the best routes of

procurement whilst keeping costs low.

“The dividend return is a timely reminder that YPO is not just a procurement organisation but a public sector provider that can generate healthy returns.”